When the Covid-19-delayed audited version of the 2019 figures for solar project developer and building-integrated PV manufacturer Singyes Solar are eventually published, they are likely to confirm the state bail-out secured in November saved the day.
Singyes – which has renamed itself China Shuifa Singyes Energy Holdings Ltd, and SFSY Energy on the Hong Kong Stock Exchange ticker – received HK$1.55 billion (US$200 million) from the Water Development (HK) Holdings Co Ltd arm of Beijing-owned construction conglomerate Shuifa Group, enabling it to reorganize a slew of defaulted senior notes and convertible bonds.
Those defaults had caused problems for the Guangdong-based solar business, with the unaudited annual figures reported at the end of last month stating a “majority of the group’s solar EPC [engineering, procurement and construction] projects cannot be delivered in accordance with the original schedule”, due to liquidity constraints.
Borrowings
Popular content
The takeover by Water Development changed all that, although the company did post a total comprehensive loss of RMB1.05 billion (US$148 million) last year, up from RMB792 million a year earlier. The reorganization of a considerable debt pile saw current borrowings fall from RMB2.96 billion to RMB1.25 billion, year-on-year, but the non-current figure rose from zero to RMB1.66 billion. The admission the company’s borrowings in mainland China carry interest rates ranging from 4.78-24% is also likely to raise concerns among the remaining independent investors.
A tough year for the business appears to have had a devastating effect on the workforce as well, with employee expenses of RMB222 million in 2018 tumbling to 174 million last year. Singyes said the change was down to a “drop in [the] number of employees, the average salary and bonus.”
The company has extended the date by which it will publish the audited figures to May 15, citing disruption caused by measures imposed in Zhuhai to limit the spread of Covid-19.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.